Reviewing DevvStream (NASDAQ:DEVS) and Sound Point Meridian Capital (NYSE:SPMC)

Sound Point Meridian Capital (NYSE:SPMC) and DevvStream (NASDAQ:DEVS) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Valuation and Earnings

This table compares Sound Point Meridian Capital and DevvStream”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Point Meridian Capital	$72.51 million	1.58	-$118.49 million	($5.78)	-0.97
DevvStream	$24,493.00	219.06	-$12.07 million	($1.54)	-0.10

DevvStream has lower revenue, but higher earnings than Sound Point Meridian Capital. Sound Point Meridian Capital is trading at a lower price-to-earnings ratio than DevvStream, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sound Point Meridian Capital and DevvStream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Point Meridian Capital	N/A	N/A	N/A
DevvStream	N/A	N/A	-202.28%

Insider and Institutional Ownership

75.8% of DevvStream shares are owned by institutional investors. 0.9% of Sound Point Meridian Capital shares are owned by insiders. Comparatively, 3.3% of DevvStream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Sound Point Meridian Capital has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, DevvStream has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sound Point Meridian Capital and DevvStream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Point Meridian Capital	0	3	1	0	2.25
DevvStream	1	0	0	0	1.00

Sound Point Meridian Capital presently has a consensus target price of $15.12, indicating a potential upside of 170.38%. Given Sound Point Meridian Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Sound Point Meridian Capital is more favorable than DevvStream.

Summary

Sound Point Meridian Capital beats DevvStream on 7 of the 12 factors compared between the two stocks.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.

About DevvStream

DevvStream Holdings Inc. is a carbon credit project co-development and generation firm specializing in technology-based solutions. DevvStream Holdings Inc., formerly known as Focus Impact Acquisition Corp., is based in NEW YORK.